Add this to the hosts file:
With Firefox and Foxyproxy addon.
First add your proxy to the Foxyproxy proxies and “http://releasegeo.hulu.com/geoCheck” to the whitelist.
Now make sure to use the “Use proxies on their pre-defined patterns and priorities”-mode. (Right click on the bottom right where is says “FoxyProxy:”) This will bypass the first check.
This check is actually client-side. It is not essential for playing the video. The player just opens http://releasegeo.hulu.com/geoCheck and checks if the response is either “valid” or “not-valid”.
Setup a vhost for releasegeo.hulu.com on your web server with a file called geoCheck in your doc root. This file should contain the appropriate value above. Then setup your DNS server to have an entry for releasegeo.hulu.com and point it to your web server. Then setup the DNS server as such on your local machine.